Gold finds gains on stock market sell-off.

[ixic]

Gold Rallies On More Bargain Hunting, Technical Buying, And As U.S. Stocks Sell Off
Thursday February 18, 2016 13:33

(Kitco News) - Gold prices ended the U.S. day session with solid gains Thursday. Some early profit-taking was overcome by bargain hunters buying the dip and by fresh chart-based buying interest—both of which coincided with the U.S. stock indexes coming under selling pressure. April Comex gold was last up $14.10 at $1,225.60 an ounce.

 

Most world stock markets were higher Thursday, following the lead of higher crude oil prices that climbed close to $32.00 a barrel. However, U.S. stock indexes started to weaken in late-morning trading and were posting losses in afternoon trading Thursday.

 

Still, this week has seen a strong rebound in world stock markets, following selling pressure early this year that recently drove most stock indexes into, or close to, bear market territory. There are now technical clues the major U.S. stock indexes have put in market bottoms. Gold and silver bulls should be impressed their metals were able to hold up fairly well this week, in the face of better risk appetite in the marketplace.

 

Technically, April gold futures prices closed nearer the session high. Bulls gained fresh upside technical momentum today. Prices are in a two-month-old uptrend on the daily bar chart and bulls have the overall near-term technical advantage.

 

 

Gold bulls’ next upside near-term price breakout objective is to produce a close above solid technical resistance at last week’s high of $1,263.90.

 

 

Bears' next near-term downside price breakout objective is pushing prices below solid technical support at this week’s low of 1,191.50.

 

 

First resistance is seen at today’s high of $1,228.80 and then at this week’s high of $1,236.30.

 

 

First support is seen at $1,214.40 and then at $1,210.00.

Edited February 18, 2016 by ixic